Financial Performance - The company's revenue for the six months ended June 30, 2021, was HKD 4,869,000, compared to HKD 644,000 for the same period in 2020, representing a significant increase of 657%[5] - The gross profit for the same period was HKD 609,000, up from HKD 358,000 in 2020, indicating a growth of 70%[5] - Operating loss increased to HKD 32,517,000 in 2021 from HKD 18,786,000 in 2020, reflecting a deterioration of 73%[5] - The net loss for the period was HKD 34,297,000, compared to HKD 19,798,000 in the previous year, marking an increase in losses of 73%[5] - The group reported a pre-tax loss of HKD 34,297,000 for the six months ended June 30, 2021, compared to a loss of HKD 19,798,000 in the same period of 2020, reflecting an increase in losses of 73%[31] - The company reported a net loss of approximately HKD 34,297,000 for the six months ended June 30, 2021, compared to a net loss of HKD 19,798,000 for the same period in 2020[17] Assets and Liabilities - The company's total assets decreased to HKD 57,669,000 as of June 30, 2021, from HKD 91,901,000 at the end of 2020, a decline of 37%[8] - The net current assets dropped significantly to HKD 16,898,000 from HKD 50,686,000, a decrease of 67%[8] - The total equity of the company as of June 30, 2021, was HKD 78,906,000, down from HKD 112,714,000 at the end of 2020, a decline of 30%[10] - The company reported total liabilities of HKD 16,406,000 as of June 30, 2021, compared to HKD 17,079,000 as of December 31, 2020[47] - The total liabilities decreased to approximately HKD 44,266,000 as of June 30, 2021, compared to HKD 45,062,000 as of December 31, 2020, showing effective management of obligations[64] Cash Flow and Financing - The cash and cash equivalents decreased by HKD 3,562,000 in the first half of 2021, compared to a decrease of HKD 6,528,000 in the first half of 2020[13] - The company had cash and cash equivalents of HKD 25,893,000 at the end of June 2021, a significant increase from HKD 2,353,000 at the end of June 2020[13] - The net cash used in operating activities was HKD 1,605,000 for the first half of 2021, a decrease from HKD 6,256,000 in the same period of 2020[13] - The company is actively considering fundraising activities, including rights issues and public offerings, to raise new capital[18] - The company continues to explore various funding sources, including project financing, debt financing, and/or equity financing for business development[76] Credit and Risk Management - The expected credit loss provision for finance lease receivables was approximately HKD 33,206,000 as of June 30, 2021, compared to HKD 25,021,000 as of December 31, 2020[39] - The accounts receivable as of June 30, 2021, amounted to HKD 63,687,000, with an expected credit loss provision of HKD 37,500,000[43] - The net expected credit loss provision for accounts receivable was approximately HKD 18,931,000 for the six months ended June 30, 2021, compared to a reversal of HKD 167,000 for the same period in 2020[45] - As of June 30, 2021, the expected credit loss provision for receivables and finance lease receivables amounted to approximately HKD 26,855,000, compared to HKD 8,474,000 in 2020, indicating a significant increase in credit risk due to the pandemic[60] Business Operations and Strategy - The company operates in two main regions: Hong Kong and China[22] - The company is focused on providing energy-saving solutions as its primary business segment[21] - Energy-saving solutions revenue accounted for HKD 4,490,000, a substantial rise from HKD 147,000 in the previous year, indicating a growth of 2,949%[25] - The company is facing significant uncertainty regarding its ability to continue as a going concern due to its financial situation[19] - The company is facing increasing competition in the energy-saving solutions sector, particularly from small to medium-sized projects[75] Employee and Corporate Governance - The employee count decreased to 19 as of June 30, 2021, down from 33 in 2020, with total employee costs amounting to approximately HKD 3,180,000[72] - The company has not appointed a chairman or chief executive officer, with these roles being jointly performed by executive directors[93] - The audit committee has reviewed the accounting principles and practices adopted by the group and approved the unaudited interim financial statements for the six months ending June 30, 2021[94] Stock Options and Share Capital - The company has a stock option plan adopted on May 25, 2018, which is valid for ten years and will expire on May 25, 2028[83] - A total of 116,203,500 stock options were granted at an exercise price of HKD 0.066 per share, which was adjusted to HKD 0.66 per share after a share consolidation[86] - The total number of unexercised stock options was adjusted from 116,203,500 to 11,620,350 following the share consolidation[86] - The company aims to attract and retain talented employees through the stock option plan[83] - As of June 30, 2021, a total of 11,122,941 share options remain unexercised, with a total of 52,333,090 options available for issuance under the existing plan authorization limit, representing approximately 10% of the company's issued shares[88]
信能低碳(00145) - 2021 - 中期财报